The government of Akwa Ibom and Adamawa states on Tuesday supported Governor Nyesom Wike of Rivers State on his move to halt the Federal Government of Nigeria from collecting Value Added Tax (VAT).
The Director-General, Media and Communications, Adamawa State Government, Solomon Kumangar, in an interview with newsmen in Yola, the state capital, said that the collection of VAT by the states was the only way of reducing their dependence on federal allocations.
In the same vein, the Akwa Ibom State House of Assembly said it will initiate bill that would enable the state to collect value added tax (VAT).
Similarly, Lagos said it would go ahead with the VAT bill, which passed second reading in the state House of Assembly on Monday.
But the governments of Ekiti, Osun and Benue states said they were still studying the situation before making any move.
The Federal High Court sitting in Port Harcourt in its judgment last month in a suit marked FHC/PH/CS/149/2020 held that the Rivers State Government had the powers to collect VAT within its territory.
The Federal Inland Revenue Service, on Monday, prayed the court to stay execution on the judgment.
The presiding judge, Justice Stephem Pam, however, rejected the application, saying granting it would negate the principle of equity.